Investigating Potential Claims – Payson Petroleum
Did you suffer losses investing in a Payson Petroleum private placement offering at the recommendation of your financial advisor? If so, The White Law Group may be able to help you to recover your losses. It is possible to file a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Payson Petroleum is based in North Texas and “leads the way in providing oil investment opportunities to the independent investor,” according to its website.
In June 2016, Payson and Payson Operating filed for Chapter 7 bankruptcy which later was converted to Chapter 11 bankruptcy. According to the bankruptcy trustee, after administrative expenses, neither company will have money left to pay its unsecured creditors.
The SEC alleges, between November 2013 – July 2014, the Griffins purportedly conducted a fraudulent two-phase offering of interests in two Texas partnerships, raising $23 million from approximately 150 investors for the purpose of developing three oil and gas wells through their company, Payson Petroluem.
Additionally, the SEC alleges that the Griffins misled investors about Payson’s promised participation in the program and about Payson’s compensation as the program’s sponsor and operator.
The Trouble with oil and gas LPs
The trouble with oil & gas LPs, like those offered by Payson Petroleum, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.
An additional risk associated with Payson Petroleum offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.
Broker dealers are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
The White Law Group is specifically investigating the following Payson Petroleum offerings, among others:
- Payson Drilling Fund 2015 I
- Payson Drilling Fund 2015 II LP
- Payson Group LP
- Payson North Texas Multi Well I LP
- Payson Petroleum Jenny #1 LP
- Payson Developmental Drilling Fund 2014 II LP
- Payson Petroleum 3 Well LP
If you have suffered investment losses in a Payson Petroleum private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.